A two-member NCLAT bench upheld the order of NCLT, which earlier rejected the petition on the grounds of a pre-existing dispute
Upholding an earlier National Company Law Tribunal (NCLT) order, the National Company Law Appellate Tribunal (NCLAT) has dismissed a plea seeking insolvency proceedings against Voltas, the Tata group firm.
A two-member NCLAT bench upheld the order of NCLT, which earlier rejected the petition on the grounds of a pre-existing dispute. The tribunal stated that it has committed no mistake in finding that the email chain between appellant Air Wave Technocrafts and Voltas reflects ongoing disputes related to work certification, amounts and supporting documentation, the reports stated.
NCLAT stated, “It is therefore clear that there is discernible preexisting dispute writ large in the facts of this case. We see no reason to take a different view in the matter from that of the adjudicating authority in rejecting the Section 9 application on valid grounds of pre-existing disputes. In result, we find no merit in the appeal. We find no reasons to interfere with the impugned order. The appeal is dismissed. No costs.”
Air Wave Technocrafts, which was engaged by Voltas for services to the clients for operation and maintenance of heating, ventilation and air-conditioning (HVAC) systems at work sites, filed a petition. The reports noted that the operational creditor raised invoices for the payment for services rendered to Voltas, which would forward these to their clients.
The petition mentioned that Voltas failed to discharge its payment obligations and later correspondence with the company resulted in a response that the outstanding dues have been put up for commercial verification. Later, Air Wave Technocrafts filed a Section 9 application for the initiation of corporate insolvency resolution process against Voltas.
